An upwind nodal solution method is developed for the steady, two-dimensional flow of an incompressible fluid. The formulation is based on the nodal integral method, which uses transverse integrations, analytical solutions of the one-dimensional averaged equations, and node-averaged uniqueness constraints to derive the discretized nodal equations. The derivation introduces an exponential upwind bias by retaining the streamwise convection term in the homogeneous part of the transverse-integrated convection-diffusion equation. The method is adapted to the stream function-vorticity form of the Navier-Stokes equations, which are solved over a nonstaggered nodal mesh. A special nodal scheme is used for the Poisson stream function equation to properly account for the exponentially varying vorticity source. Rigorous expressions for the velocity components and the no-slip vorticity boundary condition are derived from the stream function formulation.The method is validated with several benchmark problems. An idealized purely convective flow of a scalar step function indicates that the nodal approximation errors are primarily dispersive, not dissipative, in nature. Results for idealized and actual recirculating driven-cavity flows reveal a significant reduction in false diffusion compared with conventional finite difference techniques.